NSW's 'raw deal' in federal budget

NSW is getting a "raw deal" from the latest federal budget when it comes to the GST despite being the nation's top earner, the state's treasurer says.

Only $1.5 billion of new national infrastructure spending will flow to NSW while Victoria will pocket $7.8 billion in the budget, to be handed down on Tuesday.

On Monday, the federal coalition announced nearly $1 billion for a Coffs Harbour bypass on the Pacific Highway in northern NSW.

It will also commit to $400 million for Sydney's Port Botany rail duplication between Mascot and Botany and $50 million for a business case into a rail link from St Marys to the new Badgerys Creek airport.

But NSW Treasurer Dominic Perrottet wants to see more "hard earned money" returned to NSW taxpayers through GST allocation.

"The people of NSW are getting a raw deal when it comes to GST," he told AAP in a statement on Monday.

"The more we reform, the better we perform, the more penalised we get."

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CommSec's 2018 State of the States report, released in January, ranked NSW as the top-performing economy in the nation, "solidly" ahead of Victoria.

But Prime Minister Malcolm Turnbull denied NSW was being short-changed, pointing to the current and combined state and commonwealth infrastructure spending of more than $21 billion in the state.

"NSW is the largest state and it obviously has a very large share of the infrastructure spending," he told reporters.

"We have an enormous amount on track in NSW."

Mr Turnbull pointed to work benefiting from federal funding now underway, including WestConnex, the western Sydney airport and the North-South rail link.

"The Victorians were saying we hadn't committed enough money there in the past and they were pointing to big projects like the Western Sydney airport, so sometimes the timing can be an issue - but right across the country now there is a massive amount of infrastructure underway," he added.

Ahead of the federal budget, Mr Perrottet refused to be drawn on what other specific projects he'd like to see funded.

"Like all great Liberal treasurers Scott Morrison will be making careful and fiscally responsible decisions that will see the federal budget return to surplus in coming years," Mr Perrottet told AAP in a statement last week.